SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 1420

STATE OF NEW JERSEY

DATED:  MAY 18, 2026

      The Senate Commerce Committee reports favorably Senate Bill No. 1420.

      This bill exempts reverse mortgage transactions from the requirement that secondary mortgage loan payments be made in equal amounts and payment periods.  Current law requires that second mortgages to be paid in installments that are substantially the same length of time and substantially equal in payment amount.  This bill exempts reverse mortgage transactions from this requirement.

This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.